Vista borrows $16.5m to fix up Paseo Santa Fe

VISTA  Vista took another step this week toward what city officials hope will be a transformation of the Paseo Santa Fe corridor into an active downtown area with four-story buildings and entertainment. The City Council voted 4-0 Tuesday to issue $16.5 million in bonds, about $14 million of which will supply cash for redevelopment around town. Councilman Frank Lopez did not vote because he owns a restaurant that would be affected by the project.

The revitalization moves forward even amid uncertainty as to the fate of redevelopment agencies under plans in Sacramento that could prompt them to send more money to the state. The City Council has worked out a deal aimed at protecting redevelopment assets that involves the city paying for redevelopment work and being reimbursed by the redevelopment agency.

The money will be used to improve infrastructure, such as sewage and sidewalks along Santa Fe Avenue to make it more attractive to developers. The city also plans to conduct an environmental review for the area, which would save builders a step that is sometimes long and expensive, provided the projects fit the city’s vision.

“It’s kind of just the unglamorous stuff that needs to be done first,” Vista spokeswoman Andrea McCullough said. “It does take time, but it’s very worth the wait.”

The area is now speckled with vacant lots, old small buildings with bars on the windows and front yards that have accumulated household goods.

“The vision for the area is to make the Paseo Santa Fe corridor a destination area for beyond just the community of Vista,” said John Meyer, interim redevelopment director.

He said the vision for the area would be like a less dense Gaslamp District, where there is a mix of apartments, condos, office space and entertainment.

One major difference, however, is that buildings would typically stop at about four stories rather than high rises.

The city has talked about revitalizing the area since the 1980s.

Vista might borrow more than $100 million before the project is completed; less will be borrowed if possible. It will be paid back by the increase in property tax revenue, or tax increment, expected to come as a result of making the area nicer and adding new buildings. The city borrowed $36 million last year, about $22 million of which was used for redevelopment, Meyer said.

One of the major parts of the project involves building a detention basin to reduce the chance of flooding. That and other aspects of the project, such as property acquisition, were listed in the budget adopted Tuesday as City Council goals for the fiscal year starting in July. Other improvements planned for the corridor include realigning the road to slow traffic and make it more pedestrian-friendly, undergrounding utilities and adding lighting, better landscaping and public art.

The city has purchased 30 percent of the land it needs in the area. The city will help relocate many of the businesses.